Obtaining Property Development Loans with No Pre-Sales

What key institutions have to say about pre-sale contracts in the future of development finance. Pre-sales remain a key factor for project development and obtaining property development finance. Learn about pre-sales and discover how they can impact your property development loans. Consider your borrowing power and lending criteria Before you commence any development project or […]

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Quantity Surveyor Instructions and Scope: A New Approach to Contractor Failure and Property Scope Expansion

By Development Finance Partners / Matthew Royal The question of the scope of works, and the level of due diligence required by a financial organisation as defined by a quantity surveyor’s instruction letter has been the source of significant discussion in previous years as a result of perceived inadequacies in information provided, particularly when a development […]

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Key Elements To Successful Property Development & Optimising Your ROI

How your financial viability, property prices & land value factor into the equation. By Development Finance Partners / Stephen Turner There have been many property developers that have failed because they have not got the basic elements of a development project right, from the ground up (literally). Discover the steps involved to guarantee a successful […]

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Development Funding – What are the real property development costs involved?

When looking at property development costs, the two most common questions from property developers are: “What is the “all up” rate of the bank’s facility?” – i.e. BBSY (Bank Bill Rate) plus Margin plus Line Fee; and “How high is the rate for Mezzanine Debt?” What many do not realise is that the common answers […]

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Pricing for Risk in Australia’s Construction Finance Market

Banks vs Private Funding Options with Risk-Based Pricing Bank credit parameters for the construction sector have tightened; however, private markets can plug the gap by pricing for risk. Australian Banks’ Changing View on Construction Finance The Australian Banks’ reduced appetite for construction finance has been well publicised. The are several contributing factors for this, including: […]

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Effective Property Development Tax Structures

By David Kenney, Partner, Hall Chadwick As a tax adviser, there is nothing more frustrating than landing a great new client in a terrible property development tax structure. Small to medium developers often use a fresh entity/structure for each development to isolate risk, so they aren’t as susceptible as clients in other industries to structural […]

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Navigate today’s commercial property market trends and overcome the pre-sales hurdle

What we’re seeing in the property development industry today As we continue to move into the downward part of the credit, property and economic cycles the wider Property Development industry is feeling the pressure. Slowing presales and On Completion sales rates Falling demand for sites is forcing Valuers to retreat and price downside risk Increased […]

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Is Preferred Equity a solution?

Understand how preferred equity can support your property development funding It is common knowledge the Bank’s loan-to-value ratios have retreated a long way from pre-GFC levels. Compounding this challenge to Property Developers has been the falling ‘As Is Land Values’ and ‘On Completion Values’; not to mention, the higher levels of pre-commitments now required by […]

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Minimising Risk with Options

By David Kenney, Partner, Hall Chadwick Options are a useful way of minimising up-front costs and commercial risk for developers. As a tax adviser, I get asked all the time about the GST and duty implications of financial options. In fact, a new client of mine asked about GST on an option over a particular property. After […]

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No presales finance, 70% LVR, Suburban Melbourne

BACKGROUND Development Finance Partners (DFP) was engaged by its builder/developer client to procure funding for a 4 level, 8 apartment project to be constructed in suburban Melbourne. THE KEY ISSUE IN SOURCING FUNDS The client was seeking a competitive funding package with no presales, where the client’s building company was also to be the head […]

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